From 1 October 2022 the EQC is going double the current sum insured for Natural Disaster Cover (e.g. for earthquake, tsunami, hydrothermal activity) and at the same time reduce the rate that is used to calculate their premium.
A year ago Treasury predicted that this would reduce insurance costs in higher risk areas such as Hawkes Bay, Wellington and Christchurch. However, the impact of substantial rises in building costs and many recent weather bombs is expected to negate this earlier prediction.
The EQC cover will increase from $150,000 to $300,000 for each living unit and the rate will reduce from 20 cents to 16 cents per $100 sum insured, and this will result in a $207 (including GST) increase on all homes insured in New Zealand. This does not take into account any insurance company increases in premium.
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